June 25, 2024


Obey Your Finance

Questions To Ask A Finacial Advisor


We’ve put together a list of questions that you should ask potential financial advisors to help you feel confident about your decision.

How Do We Work Together?

It’s important to find someone who is flexible with your time between work and family obligations. Ask when and how they can meet you. Are they available on the weekends or evenings? Are they able to meet you virtually if you are unable to or don’t wish to meet in person? What is their schedule for meeting with you?

It’s important that you understand their approach to working together. You might prefer to be hands-on or you may prefer to leave the decision-making up to professionals. Be sure the financial advisor you’re considering supports the way you’d like to partner together.

What Services Do You Provide?

Consider what you are looking for in a financial advisor before you make a decision. Are you looking for a financial advisor who can help you achieve your goals and objectives? Do you have more complex financial goals that require more detailed management, such as a team of CPAs or attorneys?

Many financial advisors offer a variety of services including:

  • Retirement strategies
  • Considerations for trust and estate
  • Tax mitigation options
  • Education savings
  • Insurance protection
  • Cash flow strategies
  • Charitable giving
  • Options for business succession

Some advisors work only with high-net-worth individuals. Others cater to clients with different goals and life stages. As your finances and life change, you should consider whether they can help you now or in the future.

What Professional Experience Do You Have?

Many financial advisors have more experience than just financial planning. You might find them a former accountant, or someone with managerial experience. You may find that many financial advisors are ex-military personnel or teachers.

Consider that professionals who are new to the field often bring enthusiasm and dedication to their work. Consider if they have the support of an established company, which could be a win-win situation for you both.

Financial advisors often seek professional certifications in order to best serve their clients. A financial advisor must be able to sell securities. 

What’s Your Investment Philosophy?

Strong financial advisors will spend the time to get to know you and the people and things that are most important to you. They must get to know you and your reasons for investing. They will ask you detailed questions about your financial goals, current financial situation, and long-term plans. Only after having these conversations can they recommend products or strategies.

Ask your financial advisor if they prefer one type of investment over another. Some styles and investments might be right for certain investors while others may not suit them. You may not like the approach of a financial advisor who is too general.

Edward Jones is guided by its investment philosophy. This focuses on long-term investments with high-quality investments in a well-diversified portfolio. And our financial advisors take the time to get to know you, so they can create personalized investment strategies. These principles are our daily life and we will always work in your best interests.

How Are You Paid?

Financial advisors use a variety of fee structures. Ask them what their approach is – a percentage, flat fee, transaction fees, or an hourly rate. An honest financial advisor will tell you how they are compensated.

How Will You Track My Investment Performance?

Ask your financial advisor to define success in relation to your financial goals. This will allow you to discover what their values are. Next, consider whether their values align with those of yours.

Your financial advisor should monitor your investment performance to determine how it contributes to your long-term goals. While it is important to keep track of market trends and volatility, your financial advisor should also consider how any short-term movements will impact your long-term strategy.

Make sure your potential financial advisor is aware of the importance of a diverse portfolio. Make sure your financial advisor will work with you to rebalance the portfolio whenever you need it so that you can reach your long-term goals. Diverse portfolios promote steady, sustainable investment growth.

How Will You Communicate With Me, And How Often?

For any relationship to be successful, communication is essential. Financial advisors should be proactive. You should receive regular updates as well as the most recent research and investment advice. They should also check in with you to determine if your needs and circumstances have changed since your last meeting.

There will be a range of communication levels that work for each person. It is a personal choice. Find the right balance for you. Before you hire an advisor, you should agree on the frequency of your contact before you make a commitment. At least one meeting should be scheduled each year to review your financial situation.

How Will You Take Into Account My Assets You Aren’t Directly Managing?

An excellent financial advisor will know that net worth is not limited to assets held by their firm. You could have a 401(k) through work, or you may have some rental properties. You should be open with your employer about any assets that you have. Keep them informed so that they can ensure your assets are contributing to your overall goals.

This post was written by All Seasons Wealth. At http://www.allwealth.com, we provide expert advice and emphasize the importance of creating in-house portfolios to personalize your strategy for asset management, financial planning, and cash management. We utilize research and perform market analysis to provide you with a financial advisor in Tampa. No matter your needs, we can work with you to develop a consulting solution tailored to you. 

Any opinions are those of All Seasons Wealth and not necessarily those of RJFS or Raymond James. Investing involves risk and you may incur a profit or loss regardless of the strategy selected. Investing involves risk and you may incur a profit or loss regardless of the strategy selected. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment. Past performance may not be indicative of future results.